Question 1

Caterpillar,Inc.is the world's largest manufacturer of earthmoving and construction equipment.Kirovsky is a large Russian manufacturer of the same type of products.The two companies entered into a(n)_____ and created NEVAMASH,a new company.

Accepted Answer

Joint ventures are situations in which one international firm assumes an equity position (partial ownership)in another international firm to manufacture and/or market the first company's goods.

Question 2

Patch Products is an Australian company that has given permission to several Latin American companies to manufacture and market its patented Spanish/English children's frame tray puzzles.Because Patch uses licensing as its global marketing strategy,it:

Accepted Answer

A licensing company has control over all of the marketing activities associated with making its product.The licensed company pays the royalty to Patch.

Question 3

Belgian Beer brewer InBev bought Anheuser-Bush for $52 billion.This is an example of a(n):

Accepted Answer

Active ownership of a foreign company or of overseas manufacturing or marketing facilities is foreign direct investment.InBev has invested in the United States through their purchase of Anheuser-Bush.

Question 4

The _____ is an intermediary in the global market who assumes all risks and sells globally for its own account.The domestic manufacturer usually treats it like a domestic customer.

Accepted Answer

This is the definition of a buyer for export.

Question 5

Disney sells the rights for an investment company to run a Disneyland theme park in Tokyo.The investment company gains most of the profits from the enterprise while paying Disney a percentage in royalties.This is an example of:

Accepted Answer

This kind of arrangement is licensing because Disney is only selling the right to run the park.If the investment company does a poor job,Disney can seek out another to replace it.

Question 6

A(n)_____ is a global intermediary that brings the buyer and seller together.

Accepted Answer

An export broker is an intermediary who plays the traditional broker's role by bringing buyer and seller together.

Question 7

In Brooklyn,police seized a 40-foot tractor-trailer full of Sony DVD players,Gillette razors,Gucci sunglasses and a whole array of Yankees gear.All the items had company trademarks that its makers had no authority to use.The items seized were _____.

Accepted Answer

Counterfeit items are products that bear a trademark or company name that its maker was not permitted to use.

Question 8

With _____,a domestic firm assumes an equity position (partial ownership)in a foreign firm to manufacture and/or market the domestic company's goods.

Accepted Answer

This is the definition of joint venture.

Question 9

International Marketing,Inc.is a company located in Brazil and assists businesses that export products to Brazil.This company helps with financing,shipping,and any aspect of marketing a product from another country in Brazil.This company is an example of a(n):

Accepted Answer

A export agent is an intermediary who acts like a manufacturer's agent for the exporter and lives in the foreign market.

Question 10

When Krispy Kreme decided to expand its operation internationally,it chose to first make its doughnuts available in Canada to minimize its risk.In accordance with the policy of risk minimization,the company sold the right to manufacture and sell its doughnuts to Canadians.In other words,Krispy Kreme used:

Accepted Answer

Krispy Kreme used franchising,which is a form of licensing.Franchising offers only slightly more risk than exporting.

Question 11

_____ is a legal process whereby a firm agrees to let another firm use its manufacturing process,trademarks,patents,trade secrets,or other proprietary knowledge in return for a fee or royalty.

Accepted Answer

The is the definition of licensing.

Question 12

Marnie and Jill both attended a party this weekend.Marnie arrived in a high-end designer dress made by forever21.Jill's dress looked exactly like Marnie's dress,but its tag read simply K-Design.Jill's dress would best be described as a:

Accepted Answer

Knockoff items look like branded products,though they don't actually bear forged trademarks.

Question 13

A U.S.licensor can try to prevent a licensee from voiding its contract and using what it has learned to create a competitor by:

Accepted Answer

Even with lawyers writing it and a code of ethics,there is nothing to prevent a licensee from voiding the contract.Licensees typically pay a fee or a royalty to the licensor.Without patents and trademarks,protection becomes almost impossible.

Question 14

_____ takes place when a foreign company produces goods to specification set by a domestic company,with the domestic firm's brand name affixed to the goods.

Accepted Answer

Contract manufacturing is private-label manufactured by a foreign company.

Question 15

Carlos Hernandez owns a company in Miami that purchases products from U.S.manufacturers for export to several countries in Central and South America.Carlos is a(n):

Accepted Answer

A buyer for export,also called an export merchant,is usually treated like a domestic customer by the domestic manufacturer because it buys products and sells them globally.

Question 16

Franchising is a form of:

Accepted Answer

Franchising is a type of licensing, where a business (the franchisor) grants the right to another party (the franchisee) to use its business model and intellectual property in exchange for regular fees and adherence to certain rules and standards. Franchising allows companies to expand their brand and operations without taking on the majority of the risk and costs of opening new locations themselves.

Question 17

DeLouis owns an agency that specializes in bringing international buyers in contact with U.S.companies to facilitate global trade.What type of intermediary is DeLouis?

Accepted Answer

An export broker is an intermediary who plays the traditional role by bringing buyer and seller together.

Question 18

Sony,Panasonic,and other Japanese manufacturers that build products to customer order instead of churning out products in anticipation of demand have decided to hire U.S.companies to produce electronics for them.The Japanese companies will handle the marketing of the products.Japanese electronics companies are using:

Accepted Answer

Contract manufacturing takes place when a foreign company produces goods to specification set by a domestic company,with the domestic firm's brand name affixed to the goods.In this case the "domestic" companies are in Japan selling in a foreign market for them--the United States.

Question 19

_____ are foreign sales agents-distributors who live in a foreign country and represent a domestic company in sales situations.They perform the same functions as domestic manufacturers' agents who help with financing and shipping.

Accepted Answer

This is the definition of an export agent.

Question 20

eBay has been fined $63.2 million in damages for allowing fake and unauthorized goods to be sold through the online retailer.A Paris commercial judge ruled that eBay had not done enough to ensure goods sold on its web site around the world were not:

Accepted Answer

Counterfeit items are products that bear a trademark or company name that its maker was not permitted to use.

Quiz 5: Developing a Global Vision

Caterpillar,Inc.is the world's largest manufacturer of earthmoving and construction equipment.Kirovsky is a large Russian manufacturer of the same type of products.The two companies entered into a(n) _____ and created NEVAMASH,a new company.